It had to happen, the Livret A rate will drop from 3% to 2.4% from February 1, 2025. This drop, the first since 2020, marks a significant turning point for this favorite investment of the French.
A drop that is not unique to Livret A
Since the beginning of 2023, the Livret A rate had been fixed at 3%, a relatively high level which had encouraged many savers to invest their savings there. However, the recent deceleration of inflation in France, which stabilized at around 1.6% at the end of 2024, led the financial authorities to revise this rate downwards.
The decision, proposed by the governor of the Banque de France François Villeroy de Galhau and validated by the Minister of the Economy Eric Lombard, is part of a logic of economic normalization. “We are now out of exceptional circumstances and winning our fight against inflation“, he said in a statement.
This drop will have concrete repercussions for the 57 million Livret A holders in France. For an average booklet containing 7,000 euros, the annual loss will amount to around 42 euros. For those who have reached the ceiling of 22,950 euros, the difference will be more marked, with an annual “loss” of around 137.7 euros.
However, experts emphasize that even with this new rate, the Livret A remains an interesting investment. Indeed, with inflation forecast around 1.5% for 2025, the real return on Livret A should remain positive, which is not negligible in the current context.
This decision is also accompanied by adjustments for other regulated savings products. The Sustainable and Solidarity Development Booklet (LDDS) will see its rate aligned with that of the Livret A, while the Popular Savings Booklet (LEP), intended for the most modest households, will increase from 4% to 3.5%.
-The government hopes that this drop in savings rates will encourage a recovery in consumption, essential to boost economic growth. However, some analysts, such as Philippe Crevel of the Cercle de l'Épargne, remain skeptical about a radical change in savings behavior, particularly due to persistent political and economic uncertainties.
For savers looking for higher returns, this drop could encourage them to turn to other investments such as life insurance or equity savings plans (PEA), which potentially offer higher returns, but with greater risks.
Ultimately, this drop in the Livret A rate reflects an economy in transition, gradually emerging from a period of high inflation. It perhaps marks the start of a new era for French savings, encouraging them to further diversify their investments in the years to come.
???? To not miss any news on the Journal du Geek, subscribe on Google News. And if you love us, we have a newsletter every morning.
Related News :